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Azerbaijan's economy grows, despite global crisis: US experts

Business Materials 2 November 2009 16:04 (UTC +04:00)

Azerbaijan, Baku, Nov. 2 / Trend , N.Bogdanova, A.Badalova/

A famous US analyst for global economy, Thomas Goltz believes that despite the global crisis, Azerbaijan's economy has risen in the past few years. He believes so called "Dutch Disease" isn't something what Azerbaijan will face, as Azerbaijan does not allow a single resource to dominate in its economy.

"I have noticed any number of (mainly agricultural) products now produced in Azerbaijan that were previously imported," Goltz said in his interview with Trend .

Another expert, Dev Kar, who is a Lead Economist at Global Financial Integrity, former senior economist at the International Monetary Fund believes that Azerbaijan was not affected by the global crisis as much as some of the oil importing Central Asian countries or as much as Kazakhstan which has a banking crisis.

Kar believes the current global slowdown, combined with a sharp decline in food and commodity prices, should provide policy makers the opportunity to bring down inflation.

"They can take advantage of the current deflationary environment by restraining fiscal policy and through more effective use of its exchange rate policy. This will not be an easy task because tightening too fast too soon may jeopardize economic growth," Kar said.

He stressed that the non-oil sector of Azerbaijan's economy has been growing in the last years and there are quite optimistic trends.

"The government is making efforts to develop the non-oil sector in order to make the economy more resilient to external shocks and to provide employment," Kar said.

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